FSCS lawyers: Any competent IFA would know Keydata was high risk

Law firm Herbert Smith has sent letters of claim to IFAs who invested clients in Keydata - customers who have now received compensation from the FSCS - saying the scheme will pursue the firms for recovery of the money. In one such letter, which IFAonline understands is representative of those sent to other advisers, the FSCS indicates all IFAs who recommended SLS and Lifemark-backed Keydata products to low and medium risk clients are incompetent, and therefore liable to claims of negligence. "Even without having conducted any of [their] own due diligence, any reasonably-competent IFA ...